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Global Payments (GPN) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Global Payments (GPN) closed at $198.55 in the latest trading session, marking a +1.33% move from the prior day. This move outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.34%.

Heading into today, shares of the electronics payment processing company had gained 6.85% over the past month, outpacing the Business Services sector's gain of 3.62% and the S&P 500's gain of 4.73% in that time.

Wall Street will be looking for positivity from GPN as it approaches its next earnings report date. This is expected to be February 12, 2020. On that day, GPN is projected to report earnings of $1.59 per share, which would represent year-over-year growth of 19.55%. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 163.58% from the year-ago period.

It is also important to note the recent changes to analyst estimates for GPN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. GPN is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, GPN is currently trading at a Forward P/E ratio of 25.92. This represents a premium compared to its industry's average Forward P/E of 22.83.

It is also worth noting that GPN currently has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services was holding an average PEG ratio of 1.75 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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